IRDAI Bars Niva Bupa From Opening New Business Locations For 6 Months Over Expense Limit Breach
New Delhi: Insurance regulator IRDAI has barred Niva Bupa Health Insurance from opening new places of business for six months after the insurer breached prescribed limits on expenses of management during the financial year 2024-25, the insurer said on Thursday.
Niva Bupa, in a statement, said the breach related to expenses of management, which include operating costs as well as commissions paid to agents and distributors.
“IRDAI had sought explanation from the Company on Expense of Management EoM limits for financial year 2024-25. The
Company had made submissions to IRDAI” it said in its exchange filing.
The health insurer said it has complied with the prescribed expense limits for the financial year 2025-26 and remains on track to stay within the regulatory limits during the current fiscal year.
Niva Bupa is backed by UK-based international healthcare group Bupa and is among the major standalone health insurers operating in India.
The regulatory action weighed on the company’s stock. Shares of Niva Bupa extended their losses during the session and closed 1.3 per cent lower following the announcement.
“In this regard, IRDAI issued an order on August 19, 2026, whereby the Company has been warned for not complying with the applicable EoM limits for the FY 2024-25 and has directed not to open new place of business for a period of six months from the date of order,” it stated.
“The Company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholder,” it added.
The six-month restriction on opening new places of business comes as the insurer seeks to maintain compliance with regulatory norms governing management expenses and distribution costs.
“Further, it may be noted that the company is in compliance with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 (“EoM Regulations, 2024”) for the full Financial Year ended March 31, 2026 as well as for the period Q1 ended June 30, 2026 and is on track to ensure compliance with the said EoM Regulations, 2024 for the full Financial Year ending March 31, 2027,” it mentioned .
(IANS)
